Marriage Allowance – Are you entitled? What you should know!
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Up close shot of bride holding bouquet of flowers with wedding rings.

Marriage Allowance – Are you entitled? What you need to know!

Marriage allowance allows you to transfer up to £1,060 of your personal allowance to your husband, wife or civil partner.

By adding this to their personal allowance, this will mean that they’ll pay £212 less tax in the tax year.

It was the government’s intention to give a tax allowance to married couples and civil partners as a way to balance the negative tax implications when only one person works.

The legislation permits up to 10% of a spouse’s or civil partner’s unused personal allowance to be transferred. This is conditional on:

  • neither spouse nor civil partner paying tax at the higher rate, so having an income of up to £42,385;
  • the transferor having some unused personal allowance; and
  • neither spouse nor civil partner making a claim for the married couple’s allowance (which applies when one of the couple is born before 6 April 1935).

How much tax you’ll both play

By claiming Marriage Allowance:

  • your partner’s Personal Allowance increases to £11,660 – they’ll pay £212 less tax
  • your Personal Allowance goes down to £9,540 – you won’t pay any tax if your income’s less than this

CLICK HERE to calculate how much tax you’ll pay as a couple.

How to apply

You can apply for Marriage Allowance online here.

How your personal allowance will change

HM Revenue and Customs (HMRC) will give your partner their extra allowance either:

  • by changing their tax code, usually to 1166M – this can take up to 2 months
  • when they send their Self Assessment tax return, if they’re self-employed

Your tax code will also change if you’re employed or get a pension. Your new code will reflect your new Personal Allowance and will end with ‘N’.

CLICK HERE for more information on this over on the Governments website.

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